Record $137B Asia Outflow; Nifty Defies Dollar at 24,000

Foreign investors sold $137.36 billion of Asian equities in the first half of 2026, the fastest six-month outflow in LSEG data going back to 2010. South Korea accounted for $70.8 billion of that total. Taiwan lost $29.6 billion. The selling was concentrated in AI-driven winners. Overseas funds trimmed their biggest holdings in those markets and looked for laggards at a discount, Reuters reported.

India's Nifty 50 closed Wednesday at 24,005.85, up 140 points or 0.59%. The BSE Sensex added 444 points to settle at 76,922.64. The indices held their ground even as the regional outflow accelerated through the first half. Domestic liquidity and selective buying have been offsetting the foreign selling, traders said.

Within the Indian market, travel-tech stock TBO Tek rose 5% on Wednesday. The stock closed at ₹1,509.70. Technical analysts at Businessline recommended buying with a target of ₹1,650, citing a resumed uptrend above the 200-day moving average.

The dollar held steady on Thursday. The dollar index eased 0.02% to 101.38. The yen slid to 40-year lows against the greenback, keeping traders on alert for Japanese intervention. Thin trading ahead of the U.S. July 4 holiday added to the caution, FX traders said.

Federal Reserve Chairman Kevin Warsh said Wednesday that inflation expectations and price risks have eased in recent weeks. The ADP National Employment Report showed private employment rose. The gain was smaller than economists had expected. The median estimate in a Reuters poll calls for U.S. employers to have added 110,000 jobs in June. The unemployment rate is expected to hold at 4.3%.

The Friday payrolls report is due at 8:30 a.m. ET. The NFP reading will decide whether the dollar weakens or strengthens, shaping the near-term path for EM currencies and equity flows. The Nifty's ability to hold above 24,000 through that test will matter for the near-term direction. Markets will also watch for any reaction from Japanese officials as the yen approaches levels that triggered intervention earlier this year.